Which of the Following Statements Is the Best Description of 'Ordinary

question 43

Multiple Choice

Which of the following statements is the best description of 'ordinary' damages?

• A)An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss.
• B)An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
• C)An amount awarded to punish the party in breach of the contract.
• D)An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

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Definitions:

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.

Natural Monopolist

A natural monopolist is a single supplier in a market that can produce the total quantity of a good or service demanded at a lower cost than if there were multiple suppliers, due to high fixed costs and economies of scale.

Price-Regulated

A market condition where the government sets the maximum or minimum prices for certain goods or services to protect consumer interests or ensure affordability.

Marginal Cost

The extra expense associated with the creation of an additional unit of a product or service.